Bitroo Classroom 30 Mining Pool Revenue Distribution Model

Coin World Report:
PPS, PPLNS, PPS+, FPPS, and SOLO are common profit distribution models in cryptocurrency mining, each with its unique features and risks. The following is a brief explanation of these models:
1. PPS (Pay Per Share):
– PPS is a fixed payment model where miners earn profits based on the number of shares they submit, rather than the blocks actually mined by the mining pool.
– The mining pool calculates the value of each share in advance based on the current mining difficulty and the pool’s expected earnings.
– Each valid share submitted by the miner earns profits at a fixed payment rate, regardless of the time it takes for the mining pool to mine blocks.
– This model reduces the volatility of miner income, but the mining pool may charge higher fees to compensate for potential block confirmation risks.
2. PPLNS (Pay Per Last N Shares):
– PPLNS is a model that distributes profits based on the last N blocks mined by the mining pool.
– Miners’ earnings are proportional to the number of shares they submit in the last block.
– If the mining pool fails to mine blocks within the N block period, miners will not receive any profits during that time.
– This model may increase profit volatility, but in ideal conditions, miners can earn higher profits than with PPS.
3. PPS+ (Pay Per Share Plus):
– PPS+ is a variant of the PPS model that adds the distribution of transaction fees.
– Under the PPS+ model, the mining pool distributes transaction fees based on the miner’s contribution ratio.
– This allows miners to not only receive fixed payments for block rewards but also a certain percentage of transaction fees, thereby increasing overall profits.
4. FPPS (Full Pay Per Share):
– FPPS is similar to PPS+, as it is a payment model that considers transaction fees.
– Under the FPPS model, the mining pool distributes block rewards and transaction fees based on the miner’s contribution ratio.
– This model aims to provide miners with a fairer and more transparent profit distribution while maintaining income stability.
5. SOLO (Solo Mining):
– SOLO mining refers to miners mining individually rather than joining a mining pool.
– Miners solve block puzzles on their own and independently receive all rewards for mined blocks, including block rewards and transaction fees.
– The disadvantage of SOLO mining is its high profit volatility since the miner’s computing power is usually very small compared to the entire network, resulting in a lower chance of mining blocks.
– However, if the miner has sufficient computing power, SOLO mining can offer the highest potential profits.
Each mining model has its advantages and disadvantages, and miners should choose the most suitable mining model based on their computing power, risk tolerance, and market conditions.